Myra Doolittle, single, age 48, had net income of $109,000 from a business and two dependent children at home. She had AMT adjustments that reduced depreciation and increased income by $25,200. She also had $80,000 in salary income and received from her employer 10,000 options to buy stock at $18 when the market price was $20. Her itemized deductions consisted of the following:

State and local taxes                                 24,250 (remember the limit)

Property taxes                                              7,950

Mortgage interest(1st)                               16,920

Charitable contrib.                                      8,930

Medical insurance/exp                              26,950 before considering AGI floor

Assume this is for 2019 what is Myra’s tax liability before credits including AMT if none of her income is long-term capital gain. Show calculation of regular income tax first.  

Answer rating: 100% (QA)

Assuming this is year 2021 AGI and Taxable income Net Business Income 109000 Salary income 84000 Gross income 194000 Adjusted Gross Income 194000 Less ... View the full answer